Dangote IPO targets record 10 million investors

Dangote Petroleum Refinery and Petrochemicals is aiming to bring 10 million retail investors into its N2.15 trillion initial public offering, a target advisers said would be about 20 times Nigeria’s current record for retail participation.

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This will be the first offer in Nigeria that will be made to persons who truly have to subscribe digitally, utilising a wide array of platforms involving banks, fintechs, the regular and significant markets and other financial intermediaries.

The offer comprises 4.1 billion ordinary shares priced at N525 each. It will open on Sept. 14 and close on Oct. 14, ahead of a planned November listing on the main board of the Nigerian Exchange.

The transaction advisers said the structure was designed for mass participation. With a minimum subscription of 10 shares, investors can take part with N5,250. Distribution will take place electronically through banks, fintech platforms, stockbrokers and other financial intermediaries, allowing Nigerians to subscribe without visiting a physical location.

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The significance of this event is the commitment of the board, management, and all the transactional parties to the core goals of accountability, disclosure, and transparency.

Chuka Eseka, managing director of Vetiva Capital Management, described the structure as a new approach to distributing capital-market offers in Nigeria. He said the event also reflected the commitment of the board, management and transaction parties to accountability, disclosure and transparency.

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So it’s not really about raising money. If we want to raise money, we know how to raise and that’s why we have a limit. If not, we would have actually offered 20 per cent of the company.

Dangote Group President Aliko Dangote said raising funds was not the IPO’s main purpose. The offer was limited to help widen ownership beyond institutional and wealthy investors and include workers, drivers, managers and small-business owners. Dangote said the company was targeting 10 million shareholders across Africa and potentially other parts of the world, giving ordinary investors an opportunity to build long-term wealth through ownership of large African businesses.

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We are targeting 10 million shareholders from all over Africa and maybe other parts of the world.